The above image shows the two logos side-by-side. [China.org.cn]

U.S. fast-food retailer McDonald's sued the Trademark Appeal Board, China's top trademark watchdog, over a trademark dispute with a local restaurant that used an allegedly similar logo.

The suit has been handed over to the Beijing No. 1 Intermediate People's Court for trial, the Beijing Times report said.

Han Yihe, who owns the restaurant Wonderful, appeared in court as the third party.

Han had registered the word "Wonderful"as a trademark for his restaurant in 2001, together with a logo featuring an alphabet "W"in yellow with a red background. The restaurant was accused by McDonald's of using a logo resembling its easily recognizable two golden arches.

The two companies were entangled in a legal battle as early as in 2003 when McDonald's lodged an appeal to the Trademark Appeal Board, demanding a revocation of the trademark registered by the restaurant, but the authorities rejected its claim.

After McDonald's ordered the trademark watchdog to review its earlier decision, the Trademark Appeal Board decided to place a block on the registration of "W"as a trademark for catering businesses in 2011 but reserved the registration for other purposes.

McDonald's was still unsatisfied with the ruling and demanded a through prohibition.

The court will deliver judgment on the lawsuit on an unspecified date.

China's business press carried the story above on Monday.